Enbridge Inc. is weighing further asset sales this year after notching $3.2-billion in deals as the company accelerates efforts to reduce debt.
Enbridge chief executive Al Monaco said on Thursday the company is closely studying more deals based on strong interest in assets it has deemed non-essential to its business.
A Reuters report on Wednesday said the Calgary-based infrastructure giant had received several bids valuing its Canadian midstream assets as high as $4.5-billion. Keyera Corp., Pembina Pipeline Corp. and Husky Energy Inc. were among suitors that placed preliminary bids on the assets, the report said, citing unnamed sources.
Asked about the reports Thursday, Mr. Monaco told analysts: “I would say the essence of them is correct in that we are seeing very, very strong interest. So we’re optimistic, actually, that we could see some pretty good values there and if we do see them then we’ll move on it.”
Mr. Monaco is touting potential for more deals after surpassing a target of $3-billion for this year amid pressure from investors to pare debt amassed in the company’s acquisition in 2016 of Spectra Energy Corp.
Enbridge also faces uncertainty over plans to replace its aging Line 3 oil pipeline in Minnesota, seen as key to boosting cash flow and sustaining dividend growth.
The company on Wednesday unloaded a 49-per-cent stake in renewable energy projects in Germany and North America to the Canada Pension Plan Investment Board for $1.75-billion. Enbridge also sold its Midcoast Operation LP unit to private equity firm ArcLight Capital Partners LLC for about $1.44-billion.
The sales come as Enbridge awaits a final decision on its $9-billion Line 3 project expected next month from the Minnesota Public Utilities Commission.
The project involves replacing a 1960s-era pipeline with a new one, restoring capacity to 760,000 barrels a day from a little over half that level today.
Enbridge insists its preferred route for the pipeline is optimal and has sharply criticized a recommendation that it dig up and replace the old line on the existing right-of-way rather than carve a new path through the state.
The company on Thursday attributed a $193-million decline versus a year ago in first-quarter net earnings to several factors, including the write-down of some U.S. midstream assets held for sale.
Excluding such factors, the company said increased oil flows on its mainline pipeline system helped to propel adjusted earnings to about $1.4-billion or 82 cents a share. That compares with $675-million or 57 cents in the year-ago period.